Money is often said to be one of the most complex and emotionally charged topics. They say that money can’t buy happiness. Still, a lack of cash contributes to the financial stress that leads to unhappiness and adverse effects on health.
In speaking with Gretchen Rubin, New York Times best-selling author and Happiness Expert, she discusses the past two years’ effects on us. The pressures of a pandemic, recession, and social upset lead us to “The Great Realization.”
Gretchen Rubin
The Great Realization is when an individual’s priorities come into sharp focus, prompting them to re-architect their lives and pursue what matters most. Backed by proprietary research, Northwestern Mutual found financial insecurity is a massive obstacle to overall happiness and prevents Americans from making their dreams a reality. Most millennials cite finances (60%) and the fear of the unfamiliar (31%) as what is holding them back, with a majority (81%) not knowing exactly how much their goals will actually cost them.
Northwestern Mutual has discovered an overwhelming desire among Americans to earnestly pursue their dreams now, rather than waiting for that elusive “someday.” Yet, for far too many, financial insecurity is standing in the way of going after what’s most important.
Through lively conversations and a series of special guests, Rubin and Northwestern Mutual will co-host an Instagram Live’ Happier Hours’ series. This series will showcase how real people have pursued the changes in their lives that lead to happier lives. Rubin also offers the Happier app, a revolutionary new tool with concrete, actionable steps to help you build a happier life.
When it comes to financial planning, setting goals is one of the most critical steps. It can be challenging to stay focused and on track without a purpose. But what kinds of plans should you set? And how can you make sure you achieve them?
Money Can’t Buy Happiness, But It Can Buy Financial Security
First, think about what you want to achieve. Do you want to save for a down payment on a house? Build up your emergency fund? Pay off debt? Once you know your goal, you can start developing a plan.
Next, calculate how much money you will need to reach your goal. This will give you a target to focus on and help keep you motivated.
Then, determine how much money you can realistically save each month. Automating your savings can help make this easier. For example, if your goal is to save $10,000 in two years, you would need to save $417 per month.
Finally, create a budget and stick to it. Make sure your spending aligns with your goals and consider tracking your progress along the way. Following these steps can develop a solid plan for reaching your financial goals. So, get started today and take control of your future!
The bottom line is uncertainty is due to the lack of a plan. Many people feel uncertain about their financial future because they do not have a plan. Without a plan, setting goals and tracking progress can be difficult. Additionally, without a plan, you may be more likely to make impulsive decisions that can cost you money in the long run. A financial plan can help you map out your future and make informed decisions about using your resources best. By taking the time to create a financial plan, you can gain peace of mind and avoid the anxiety that comes with uncertainty.
Melissa Houston, CPA is the host of She Means Profit podcast and blog. She is a Finance Strategist for CEOs where she helps successful business owners increase their profit margins so that they keep more money in their pocket and increase their net worth.
The opinions expressed in this article are not intended to replace any professional or expert accounting and/or tax advice whatsoever.
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